Staikouras – Support measures for households and businesses

The Minister of Finance, Christos Staikouras, announced the strengthening of the real economy with measures of 4 billion euros in the second half of 2021, specifying the package of support measures for households and businesses, which was presented by the Prime Minister at the Thessaloniki International Fair.

“Investments are multiplying, unemployment is shrinking, businesses are starting economic activity, the economic climate is moving in a pre-pandemic climate,” Staikouras said.

“The financial staff has a comprehensive plan for the creation of more wealth and its fair distribution. “In the last two years, we have achieved specific measurable goals,” said the Minister of Finance.

As a result of the above, he hastened to add, the estimate for the growth of 2021 is 5.9%, covering more than 2/3 of the recession of 2020. In fact, he noted that this estimate may prove to be conservative.

Regarding the support measures, Mr. Staikouras announced the following:

Extension of the COOPERATION program until the end of 2021
Extension of the “BRIDGE” program for three months
Expansion of the 100,000 job support program by 50,000 jobs
Reduction of the rate of return of Advance Refunds, depending on the fall of the gross income of the company
The first “social security benefit” is provided. All young people from 18 to 29 years old without previous service receive a grant of 1,200 euros for the 6 months of employment. The 600 euros will be received by the employee in addition to his salary and the remaining 600 by the employer.
The granting of housing allowance to Junior College students is extended
The heating allowance is increased by 20%. It thus amounts to 100 million euros.
At least for the fourth quarter of 2021, the total population will be subsidized for the first 300 kilowatt hours at an amount of 30 euros / kilowatt hour. The subsidy also applies to low voltage business bills.
Total support measures amount, as pointed out by the Minister of Finance, to 16.6 billion euros for 2021, while the cost of additional stimulus measures now stands at 3.5 billion euros for 2021 – 2022.

The total interventions amount to 47.2 billion euros for the period 2020 – 2022.

The 6 goals

The financial staff sets 6 specific goals:

– Achieving high growth rates of the Greek economy

– Improving the composition of GDP

-Exit from enhanced supervision within 2022

– Single-digit percentage of red loans in bank portfolios

– Realistic primary surpluses from 2023

– Achieving investment level from 2023